Which of the following is an example of a general authorization?
A)The highest credit limit allowed for accounts receivable is $50 000.
B)ABC Company has a credit limit of $25 000.
C)Each supervisory wage rate must be approved by the executive manager.
D)Grocery supervisors approve each transaction reversal over five dollars.

Question

Quizplus · Accepted Answer

A general authorization is a broad authorization that applies to multiple transactions or situations. Option A provides a limit for accounts receivable that applies to all customers, which is an example of a general authorization. The other options provide specific authorizations for individual situations, making them not general authorizations.

Which of the Following Is an Example of a General